Unions will not like the public-sector wage cuts, but they are better than begging international donors to keep SA afloat, writes Ignatius Sehoole
Unions will not like the public-sector wage cuts, but they are better than begging international donors to keep SA afloatThe 2020 national budget was always going to be pressurised or constrained, but as it was tabled by finance minister Tito Mboweni in parliament this week, it was also encouraging in terms of its view on expenditure as well as its growth perspective.
The good news for the over-stretched SA taxpayer is some much-needed and deserved relief for the first time in five years. The extra dispensable income this brings should get consumers spending and help stimulate economic growth. Fiscal drag was accounted for in personal tax through the adjustment of income brackets. This was long overdue, as it has remained the same for two years
As far as SAA is concerned, we cannot continue to throw taxpayers money into a seemingly bottomless pit to fund its failing endeavours. A state airline can be run efficiently, as is the case with the Ethiopian Airlines and the UAE’s Emirates, but only along business principles and managed by capable hands — and without government interference. After its business rescue has come to an end, it will hopefully be a smaller concern that can move forward on a profitable basis.
Capital expenditure would have been another deserving area, but we don’t have the money to put into it for now. However, infrastructure will need attention soon.
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